A Review of the Nigerian Energy Industry

PPMC sells N1.86trn kerosene, fuel, diesel

*Fuel dispensing.

Ike Amos

26 March 2018, Sweetcrude, Lagos — The Nigerian National Petroleum Corporation’s (NNPC) downstream subsidiary, the Petroleum Products Marketing Company (PPMC) sold kerosene, diesel, and petrol valued at N1.86 trillion in 2016.

Kerosene, diesel, and petrol are generally called white petroleum products.

The NNPC, in its Monthly Financial and Operating Report for December 2017, released recently, disclosed that Premium Motor Spirit (PMS), also known as petrol accounted for 84.71 percent of total earnings from white products sale in 2017.

Specifically, the report noted that PMS sales stood at N1.579 trillion, while Automotive Gasoline Oil (AGO), also called diesel, and Dual Purpose Kerosene (DPK), also called kerosene accounted for 10.52 percent and 4.72 percent of total white products sale in 2017 with N196.27 billion and N88.446 billion respectively.

Giving a breakdown of total white products sale on a monthly basis, the report stated that in January, February, March, April, May and June 2017, total sales of the three products stood at N94.72 billion, N179.81 billion, N206.42 billion, N199.11 billion, N145.78 billion and N142.65 billion respectively.

In July, August, September, October, November and December, the report declared that white petroleum products sales stood at N132.04 billion, N111.36 billion, N151.42 billion, N168.56 billion, N125.73 billion and N206.43 billion respectively.

On the other hand, the PPMC earned N72.79 billion from the sale of special products in 2017, comprising mainly Low Pour Fuel Oil, LPFO.

In the months of January to June, the PPMC recorded total special products sales of N1.39 billion, N986.51 million, N2.7 billion, N1.6 billion, N3.37 billion and N21.23 billion respectively, while for July to December 2017, sales of the commodity stood at N790.47 million, N910.8 million, N7.08 billion, N13.14 billion, N6.18 billion and N13.42 billion respectively.

On a volume basis, the report stated that the PPMC sold 15.259 billion litres of white products in 2017, comprising 13.31 billion litres of PMS, 1.29 billion litres of diesel and 647.39 million litres of kerosene.

On the other hand, the report noted that the PPMC sold 616.4 million litres of special products, with LPFO sales accounting for 304.96 million, while other special products sales stood at 311.43 million litres.

The Nigerian National Petroleum Corporation, NNPC, yesterday, said it remitted N857.36 billion to the federation account in 2017.

The NNPC, in a statement on its Monthly Financial and Operations Report for December 2017, also disclosed that it remitted N19 billion to the Federal Government for debt repayment, while N644.05 billion was used to finance its Joint Venture operations.

The NNPC stated that it recorded total export receipts of $476.25 million in December 2017, from the sale of crude oil and gas as against $201.11 million in November 2017.

According to the report, while receipts from crude oil amounted to $342.16 million, gas and miscellaneous receipts accounted for $94.85 million and $39.24 million respectively.

The report also stated that domestic crude oil and gas sales in the month amounted to N96.68 billion, consisting of N89.11 billion from domestic crude oil and N7.57 billion from domestic gas.

Of the naira receipts, the NNPC explained that the sum of N77.57 billion was transferred to the Federation Account in the month under review, while N19.11 billion was paid for Joint Venture Cash Call, JVCC, being a first line charge to guarantee continuous flow of revenue stream to Federation Account.

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